Weekly Blog 1 - Tone from the top

As new technology is introduced, an organisation's information system are becoming more complex, to minimise potential loses senior management are pressured into implementing an IT governance that suits the organisation's culture.

Poor attitude from senior management has a negative rippling effect down to lower levels of the organisation, otherwise known as, tone from the top. A governing body producing ineffective internal controls are one of the primary contributors to fraud according to a KPGN survey(Accountingweb, 2007). As a result, creates a culture throughout the organisation whereby opportunities for fraud are more prevalent.

After being introduced to the tone from the top concept, it reminded me of an example a lecturer gave from another subject. An employee embezzled thousands of dollars all because her firm had minimal IT governance, they had all access to computers and could print fake checks. What baffles me is that after a complaint was made, none of the higher staff took action, especially her boss 'trusted' this employee all because they had worked there for a long time.

I recommend that organisations should provide proper training and whistleblower policies to minimise the chances of fraud.

References

Accountingweb (2007). Executives say poor internal controls contribute most to fraud. Retrieved 18 March, 2015 from http://www.accountingweb.com/topic/executives-say-poor-internal-controls-contribute-most-fraud